Air Canada (TSX:AC) stock was up 3.17% at the bottom of the noon hour on February 20. Shares have dropped 1.7% so far in 2018. The company released its 2017 fourth quarter and full-year results on February 16.
Air Canada reported record operating revenues of $16.25 billion and record EBITDAR of $2.92 billion. The airline carried a record 48 million customers in 2017 and opened 30 new global routes. In 2017 passenger revenues jumped 10.1% to $14.47 billion and the company posted traffic growth of 11.3%. A tax expense of $16 million resulted in slightly lower adjusted net income for the full-year in 2017 while on a GAAP basis Air Canada posted net income of $2.03 billion in comparison to $876 million in the prior year.
WestJet Airlines Ltd. (TSX:WJA) stock rose 1.72% close to the end of the noon hour on February 20. Shares have declined 3.3% in 2018 thus far. WestJet announced its fourth quarter and full-year results for 2017 on February 6.
Total revenue increased 9.2% to $4.5 billion in 2017 and segments guests grew 10% to 24.1 million. WestJet also posted its 51st consecutive quarter of profitability in Q4 as it reported net earnings of $48.5 million. The company also delivered a dividend of $0.14 per share representing a 2.2% dividend yield.
Airlines had the safest year on record in 2017 and passenger traffic shows no signs of slowing down in early 2018. Air Canada and WestJet are set to compete for regional flights with Rouge and WestJet’s Swoop carrier, which is set to be launched in June.
